Car Loans From 3.99% p.a.

We’ve helped Australians across the country save thousands on their car loan. With links to over 25 of Australia’s top lenders, our car loans take your money further. See how you can compare and save with us

No obligation. It won't affect your credit score.

Last updated on June 6th, 2022 at 10:11 am by Thomas Perrotta

Low rate car finance for new and used cars

Savvy drives car loans further

We’ve helped Australians across the country save thousands of dollars on their car loan. With links to over 25 of Australia’s top lenders, the level of satisfaction our customers feel is reflected in our 4.9-star Feefo rating for outstanding service. 

Our expert car loan consultants are with you every step of the way. We personalise our service to each and every customer, so you can rest easy knowing you’ve secured a great car loan deal suiting your budget and needs. 

Think car loans, think Savvy

Get more car loan options. Whether you’re buying new or used, from a private seller or dealer, we can help secure the best rates and most flexible terms. If you’re in business, we speak your language. We help businesses secure commercial chattel mortgages, hire purchases or a car lease that keeps cash flowing.

Have a complicated situation? We work hard and have a high success rate in assisting customers with ‘outside the box’ requirements.

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The features and benefits of car loans with Savvy

Access competitive rates from 3.99% p.a.

With comparison rates starting at 4.36% p.a., you can lock in an affordable deal for yourself from the outset and save hundreds of dollars over your loan, if not more.

Borrow 100% of your car’s value

You won’t be required to make a substantial deposit at the beginning of your loan, with finance available for up to the purchase price of your car (with on-road costs able to be included).

Flexible loan terms

Borrowers can select the term over which they repay their car finance deal, with loans as short as one year and as long as seven able to be repaid weekly, fortnightly or monthly.

Repayment stability with fixed interest

By locking in your interest rate at the start of your loan, you can bring greater stability to your repayments by guaranteeing consistency each and every instalment.

Buy new or used, anywhere in the country

Whether you’re looking to purchase a brand-new car from the dealership or a used vehicle in another state, our consultants and panel of online lenders will find a solution for you.

Rapid loan approvals

From the moment you submit your application form with Savvy, you can have the funds transferred and take ownership of your car within just 48 hours.

Both private and business finance options

Whether you’re looking for a car to drive the kids around or a helping hand with the purchase of a commercial vehicle, there’s a range of options at your disposal.

100% online applications

You can complete an application, be approved and receive your loan funds without having to leave your home.

Why choose Savvy for your car loan?

Our range of car loan options to suit all your needs

Our car loan process explained

Car loan calculator

Your estimated repayments

$98.62

Total interest paid: $1233.43
Total amount to pay: $5,143.99

Brands you can trust

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We are accredited with the most reputable lenders and insurers in Australia giving you a fair choice to compare.

Got a question about your car loan?

What is a comparison rate?

A comparison rate, put in simple terms, is an interest rate that includes most common fees and charges associated with a car loan, given as a percentage per annum (per year.) This is the base interest rate plus ongoing fees such as account keeping fees, administration fees, and other general charges. This does not include transactional or situational fees such as requesting a statement, early payment fees (if applicable) or late payment fees.

How long does the car loan application process take?

You can have your application approved, signed and funded in as little as 48 hours when you apply with us. However, the time it takes to approve an application differs from person to person, as everyone’s financial situation is different. There are also other small variables which can impact the time it takes, such as at what time of day or week you submit your application.

What are unsecured car loans?

Unsecured car finance is essentially just an unsecured personal loan used to purchase a car. You might turn to this type of loan if you’re looking to buy a particularly old vehicle or one which otherwise doesn’t meet lender criteria (such as being older than 20 to 25 years at the point of purchase), but it’s not recommended for eligible cars due to its higher interest rates and lower borrowing ranges (capped at around $75,000).

Does a car loan take longer to get approved if I'm self-employed?

No whether it’s a consumer or commercial loan, the approval process remains the same. The key to a fast approval is delivering the required documents to your consultant upon request. Your Savvy consultant is skilled at all scenarios and, with our technology-driven process, will have your loan approved within 24 hours.  

Can I make additional payments above the minimum required amount?

Yes – none of our lenders will penalise you for making additional repayments beyond your monthly requirements. However, doing so will likely result in an earlier final payment, which can result in a fee in some cases, so you should make sure you know what the costs of doing so in the long term are.

Will I be able to take out a car loan if I’ve never borrowed before?

Yes – we work with specialist lenders who can help you get approved for your first car loan. If you can prove that you’re earning a comfortable living, have positive savings habits and are capable of maintaining consistent repayments, you can be approved for car financing with the right lender by applying with us.

Will I be able to put a balloon payment on my car loan?

Probably not – residual payments are typically reserved for commercial car finance, so most lenders won’t enable you to put one at the end of your loan. Over the course of your agreement, you’ll benefit more from making an upfront deposit than a residual payment, as a deposit directly reduces your loan amount while a residual doesn’t really.

How can Savvy help you get a better rate on your car loan?

Having a high credit score

Your credit score will play a major role in helping us determine whether we can get you the best interest rates on your car loan. It’s a key indicator to lenders about your borrowing history, such as your past borrowing, any late repayments or defaults and your existing credit limits. 

Buying new or near new

Lenders always lean towards brand-new cars, or those fewer than three years old, so your Savvy consultant will help walk you through your vehicle options. We can even help you source your car through our dealer network so you can choose from the best.

Being asset-backed

If you own any property, whether it be your house or a suite of units, we can help you access the best interest rates on your car loan. This is because lenders always prefer borrowers with asset-backing, either paid off or currently paying for. Some may also accept significant savings, known as “cash at bank”, instead of real estate.

Having verifiable existing credit

A strong repayment history on a past or current car loan is another key factor that can enable us to obtain the best interest rates from lenders. This displays to your lender that you’re a trustworthy borrower who can handle the responsibility of loan repayments.

The pros and cons of car loans

PROS

Bring your dream car within reach

Car loans are a great way for borrowers who may not have the funds available to pay for the car they want to purchase one nonetheless, helping you achieve your financial goals.

Space out your repayments over as long as you need

These loans are offered over a range of different term lengths, giving you the ability to tailor your repayments to suit your individual financial needs and ensure you’re comfortable.

Pay as much or as little upfront as you like

They also come without any need for a deposit as part of the purchase, allowing you to borrow 100% of the vehicle if you like, but enable you to pay a deposit and reduce its overall cost if you choose to.

Lower rates than personal loans

Because these loans are secured by the purchase of the vehicle itself, you can take advantage of notably lower rates and save hundreds, if not thousands, compared to personal loans.

Can help boost your credit score

By sticking to your repayment schedule across your term, you can improve your credit score and increase your chances of approval for affordable loans in the future.

CONS

Pay interest and fees

Of course, part of the deal of borrowing money involves paying your lender added costs, meaning you’ll end up paying more overall for the car than its original purchase price.

Watch out for depreciation

Because cars depreciate at a fast rate, your vehicle’s value may have dropped significantly by the conclusion of your loan, making it difficult for you to recoup your funds if you wish to sell it.

Car loans explained further

Market update for car loans: May 2022

With the Reserve Bank of Australia (RBA) expected to raise the national cash rate further at the start of June, car loan interest rates could increase for those yet to have taken out their finance deal (but not for those who have already locked in their agreement).

However, this doesn’t mean you won’t be able to secure a great and affordable car loan deal. Savvy is partnered with a wide and diverse range of vehicle financiers from around Australia, so we can help you lock in the lowest rate available to you by guiding you through the application process.

May saw a notable drop in terms of car sales, with 94,383 vehicles purchased throughout the month to represent a 6.4% decrease in units sold compared to the corresponding period last year and an overall drop across Australia except for the Northern Territory.

The Australian Bureau of Statistics (ABS) also released their lending indicators for April of this year, revealing a 6.7% decline in the value of new loan commitments for the purchase of vehicles amid an overall decrease in the total value of new personal finance agreements compared to March.

You can get the wheels in motion on your car loan application by getting a quick quote with us today and get approved and funded before you know it with the help of our experienced consultants.

How do I compare car loans?

It’s always important to not just apply for the first car loan you see, as doing so could mean you end up missing out on a better, cheaper finance deal. Comparing options is crucial, which is why it’s so handy to apply with Savvy. Our dedicated and experienced consultants do the heavy lifting for you, comparing from our panel of lenders to match you with one who best fits your needs as a borrower. If you want to get a feel for the market before you apply, though, you can look at the following factors:

Interest rates

Perhaps the most obvious area to compare between car loans is their interest rates. Interest is the most significant cost charged on your car loan and, depending on its size and term length, could cost you thousands of dollars, if not over $10,000 in total. Even a seemingly small difference between rates can save you a tremendous amount overall. For instance, a $50,000 car loan to be repaid over five years at 6% p.a. would cost you just under $8,000 in interest, but you’d save almost $1,400 by choosing a loan with a 5% p.a. rate.

Available repayment terms

In most cases, the potential range of terms offered by your lender will be largely consistent, regardless of who you’re looking to apply with. As mentioned, this typically ranges from one to seven years, but this isn’t necessarily the case with all lenders. Some may enforce longer minimum or shorter maximum terms, so it’s especially important to take note of this whilst comparing finance deals if you’re looking at a particularly short or long loan term.

Minimum loan amounts

While car loans don’t generally come with maximum loan sizes (given that the car itself is used as collateral for the loan), they do come with a minimum required amount. This can vary from as little as $2,000 with some specialist lenders up to as much as $10,000 or more with others. Of course, this is only really important to be aware of if you’re looking to buy a used car or are putting down a significant deposit on a new car, but you should still check to ensure the lender can accommodate your preferences.

Fees

You should also be wary of the fees which can apply as part of your car loan. There are several different charges which lenders may include in their finance offers, including the following:

  • Establishment fee: up to $600
  • Ongoing monthly fees: up to $20
  • Early repayment fee: up to $600 to $900 (depending on how long is left on your loan)
  • Late payment fees: up to $50

However, all of these fees (except late payment charges) can be waived by lenders in certain circumstances. That’s why applying with Savvy can help you: we’re able to find low-fee offers and negotiate cheaper deals on your behalf.

Vehicle requirements

If you’re looking to purchase a used vehicle, you’ll also need to ensure it meets your lender’s requirements for secured loans. Because your lender will acquire it to recoup lost funds if you become unable to pay off your loan, they need to ensure it can be resold to cover most of their losses. The most prominent requirement comes in the form of the car’s age which, with our lender panel, can reach anywhere up to 20 years old (or beyond 25 with unsecured finance).

Your car may also be required to have been manufactured in Australia or imported here by its manufacturer and not to have been written off previously, both of which may differ between lenders.

Applicant eligibility

Finally, it’s crucial to make sure you’ll be able to qualify for car financing yourself. Each lender has its own set of eligibility criteria which all applicants are required to meet. Fortunately, your Savvy consultant will make sure your application only goes out to lenders who can accept it, saving on the risk of rejections going down on your credit file. The main criteria you’ll be required to meet as a borrower include:

  • Age: you must be at least 18 years old
  • Residency: you must be an Australian citizen or permanent resident (some lenders can work with eligible visa holders
  • Income: you must be earning a minimum income (typically at least $26,000) from stable sources
  • Borrowing history: you must have an average or above credit score (although we can help applicants who have struggled with their credit)

How much will I be able to borrow to buy my car?

The answer to how much you’ll be able to borrow depends on several personal variables which are different for each applicant. Your Savvy consultant will run an affordability check when you apply with us to ensure you can be approved for the amount you’re looking for and will match you with a lender who can meet your financial needs. These factors include:

Your income

Of course, the amount you earn will have a direct impact on what you’ll be able to borrow and subsequently repay. In theory, the more you earn, the more money you’ll have left over to support car loan payments. Of course, it’s not always this simple, but higher income-earners are much more likely to be approved for a greater sum of money compared to lower earners.

Your employment

Another aspect lenders assess is the nature of your employment. Those who are working in stable positions for longer periods, such as full-time employees at the same company for several years, are seen as being more likely to be able to fulfil their loan obligations without any issues. Lenders may be more willing to approve a greater sum if you’re in this position or are a permanent part-time employee compared to casual employees or self-employed workers who may not have the same stability. You can still borrow large amounts working in the latter two positions but will likely have to go to greater lengths to show you can support your loan.

Your expenses and liabilities

Income is only half of the battle when it comes to car loans, as you’ll need to balance your proposed repayments with your ongoing living expenses, which may also include outstanding loan or credit card debts (known as liabilities). Lenders won’t want to place you in a situation where you end up falling under financial stress because of the weight of your debts, so they’ll be especially cautious when assessing applications.

Your credit history

The higher your credit score and the more developed your history of repaying similar loans is, the more likely you are to be approved for a larger sum. Lenders always prefer borrowers with a proven history of managing and repaying their debts, as doing so is a process which can require a great deal of discipline. Showing a financier a proven track record of repaying loans can boost your chances of approval for the amount you’re looking for.

The value and condition of your car

The amount you’re approved for will directly correlate to the value of your vehicle, as your loan is designed to cover its purchase either in part or entirely. You won’t be approved for more than its value (aside from covering stamp duty and other on-road costs) but you may be approved for less if your lender doesn’t believe it’s worth as much as it’s being sold for.

What are the documents I’ll need for my car loan?

Different lenders will have different requirements when it comes to the documents you’ll need to be approved for your car loan, but the main information you’ll be asked to supply will include the following:

  • Proof of identity: primarily in the form of your driver’s licence, but your passport may also be accepted
  • Proof of income: typically your last two payslips, but 90 days of bank statements may also be required. If you’re self-employed, you’ll need documents such as tax returns or Notices of Assessment from within the past 12 months to two years
  • Proof of assets: a record of the valuable assets you own, such as property, other vehicles and your savings
  • Proof of liabilities: a record of your outstanding debts, such as loan repayments and/or credit card debts
  • Proof of expenses: a record of your regular ongoing expenses, such as rent, groceries and memberships
  • Information about your car: including the age, make and model of the vehicle, a dealer invoice or contract of sale and information on vehicle registration

What other costs will I have to consider when buying a car?

It’s not just the interest and fees which come with car loans that you’ll have to consider, but also the other external costs of purchasing and maintaining a vehicle. Before jumping into your car loan application, it’s important to budget for these, as they’re likely to have an impact on the amount your lender believes you’re capable of comfortably repaying over the course of your loan. The main costs to consider are:

  • Stamp duty: this is a fee charged by your state or territory government whenever you purchase a vehicle. There are several different factors which can impact its cost depending on where you live. For example, in South Australia and New South Wales, stamp duty is based on the purchase price of the vehicle. However, Queensland’s stamp duty also considers the type of engine of your vehicle (increasing in cost up from electric to seven or more cylinders), while Victoria and the ACT’s taxes are also impacted by how green (environmentally friendly) the car is.
  • Vehicle registration: this is a fee you’ll have to pay every three, six or 12 months (depending on how long you choose to take it out for). All vehicles must be registered at all times to be able to be driven, so you’ll need to take out rego on your next car if it isn’t already registered. This also varies in value depending on where you live and can range from around $700 up to or above $2,000.
  • Comprehensive car insurance: all cars purchased under finance must be covered by a comprehensive car insurance policy, as this ensures the loan’s security is covered in the event of any vehicle damage. You won’t be required to go with a policy your lender recommends, as you can take out insurance with whichever financier you wish. This can reach up to $150 per month, so it’s worth taking the time to find the right balance between providers who aren’t too expensive and can provide you with the cover you need.
  • Other on-road costs: as is the case with any car, you’ll have to pay to keep it on the road and running. You’ll also need to keep it maintained throughout your loan term, so regular servicing should be arranged in your budget. Of course, petrol will be an ongoing cost which you’ll need to allocate funds for every week or two, depending on how often you use your car.

What are my commercial car finance options?

If you wish to purchase a vehicle for your business, the best option for you is likely to be a chattel mortgage. This is structured very similarly to a standard private-use car loan in terms of being able to pay over one to seven years and owning the asset from the outset of your agreement but comes with a number of key differences.

Firstly, because your vehicle will be used for business purposes, there are a number of tax benefits you can take advantage of. GST is a claimable cost, meaning you’ll automatically save 10% off the purchase price. On top of this, you’ll be able to claim the interest you pay on your loan and the depreciation of your asset on your tax return. This can save your business thousands of dollars over the course of your agreement.

Additionally, you can attach a residual or balloon payment to the end of your agreement. This is essentially the reverse of a deposit, requiring you to pay a lump sum at the conclusion of your agreement. As a result, your repayments will be reduced, freeing up more funds month to month. However, it’s important to note that a residual will cost you more overall, as the interest will gradually reduce to your value of your residual rather than $0.

If you don’t want to commit to the purchase of your vehicle just yet, though, you can also look into a car lease. You can choose whether to go for a finance or operating lease. Finance leases place the responsibility of maintaining the asset in the hands of the lessee, with the asset treated like their own and included on their balance sheet. A balloon payment will be required at the end of the term to pay, which can be done by simply paying it, selling or trading in the asset or extending the lease or taking out a new one. However, operating leases have all maintenance and other costs included and give you the ability to simply hand it back at the conclusion of the term.

By applying with Savvy, you can find out more what the best type of finance for your commercial needs is. You can get a quote today and have your deal signed, sealed and delivered in just 48 hours.

What is car loan pre-approval?

Pre-approval on a car loan is when a lender conditionally approves your application. This is a non-binding approval, meaning it’s not a guarantee that you’ll be approved for the same loan when you formally apply. Pre-approval can be very helpful for car buyers, as it gives a clear indication of the loan amount they’re likely to be approved for, setting a budget in place before they start shopping around for cars. These pre-approvals last for up to 30 days (or sometimes longer), enabling you to take your time and do thorough research into which car is best for you.

The other effect pre-approval has is that it gives you a ceiling with which to negotiate on the price of your car from sellers. For instance, if you were buying from a private sale listed at $35,000 and you had finance pre-approval for $32,500, your seller will know that you won’t be able to go much above that amount when purchasing the vehicle. This stronger hand can make a big difference and help you save a significant amount of money.